A story emerged yesterday that reports that the average per mobile app user acquisition cost is declining. While that may be good news for advertising buyers, it may not be such good news for the overall health of the mobile economy.
That’s because the transition from desktop and laptop-based digital marketing to mobile form factors has resulted in overall advertising price declines. Those declines are reflective of the belief that mobile advertising inventory isn’t as powerful as other digital marketing formats. In order to justify price increases, mobile advertising inventories need to increase more slowly than demand for that inventory and show that it can deliver more value to advertisers.
Otherwise, we’ll remain in a persistent buyer’s market.
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